Can Foreigners Buy Properties in Oman? A Guide to Salalah’s Real Estate Market
Oman, known for its breathtaking landscapes and rich cultural heritage, is becoming an attractive destination for foreign property investors. Among its key cities, Salalah stands out as a top choice due to its unique Khareef (monsoon) season, pristine beaches, and booming tourism sector.
But can foreigners buy property in Oman, particularly in Salalah? The answer is yes! Oman’s government has introduced freehold ownership in designated areas, making it easier for expatriates and international investors to own real estate. This blog explores where and how foreigners can buy property in Salalah, the benefits of investing, and key market insights.
Can Foreigners Buy Property in Oman?
Foreigners can buy freehold property in Oman, but only within Integrated Tourism Complexes (ITCs)—designated areas developed specifically to attract international investors.
🔹 Key Benefits of ITCs for Foreign Buyers:
✅ 100% Freehold Ownership – Foreigners have complete ownership rights.
✅ Automatic Residency – Property owners and their immediate family members get Omani residency.
✅ No Personal Income Tax – Rental income and capital gains are tax-free.
✅ Long-Term Investment Security – Properties can be sold, rented, or passed to heirs.
Why Salalah is a Hotspot for Foreign Real Estate Investors
Salalah, the capital of Dhofar Governorate, is gaining popularity among property buyers due to its booming tourism sector, strategic location, and affordable property prices compared to other Gulf cities like Dubai and Doha. Here’s why foreign investors are increasingly interested in Salalah’s real estate market:
1️⃣ Growing Tourism Boosts Rental Market
Salalah’s Khareef season (June to September) brings thousands of tourists from the Gulf and beyond. This has created high demand for short-term rentals and vacation homes, offering attractive rental yields for investors.
💡 Investment Tip:
- Beachfront villas & serviced apartments near tourist attractions yield the highest rental returns.
- Short-term rentals on Airbnb and Booking.com can generate significant income, especially during peak seasons.
2️⃣ Prime Real Estate Developments for Foreigners
Foreigners can buy properties in Salalah’s Integrated Tourism Complexes (ITCs), which offer world-class residential and hospitality developments.
🔹 Top ITC Projects in Salalah for Foreign Investors:
🏡 Hawana Salalah – The largest ITC in Dhofar, featuring luxury villas, waterfront apartments, a marina, and a 5-star hotel.
🏡 Alila Hinu Bay Residences – An exclusive beachfront community with high-end villas and serviced residences.
🏡 Salalah Beach Resort Development – A new master-planned community with modern residences and resort-style living.
These projects provide access to resort-style amenities, private beaches, golf courses, and leisure facilities, making them ideal for both holiday homes and rental investments.
3️⃣ Affordable Prices Compared to Other Gulf Cities
Compared to cities like Dubai and Doha, Salalah’s real estate market offers lower property prices while still providing luxury and high investment potential.
📉 Average Property Prices in Salalah ITCs:
- 1-Bedroom Apartment: OMR 40,000 – 70,000 ($100,000 – $180,000)
- 3-Bedroom Villa: OMR 120,000 – 250,000 ($310,000 – $650,000)
- Luxury Waterfront Villa: OMR 300,000+ ($780,000+)
💡 Why This Matters for Investors:
- Lower initial investment compared to Dubai or Abu Dhabi.
- Higher rental yield potential due to increasing tourism demand.
- Long-term property appreciation as Salalah grows as an international tourist hub.
How to Buy Property in Salalah as a Foreigner
✅ Step 1: Choose a Property in an ITC
Foreign buyers must purchase property within an Integrated Tourism Complex (ITC) to secure full ownership rights.
✅ Step 2: Hire a Real Estate Agent or Developer
Work with licensed real estate agents or directly with ITC developers to ensure a smooth transaction.
✅ Step 3: Sign the Sales Agreement & Pay Deposit
Once you’ve chosen a property, you will need to sign a purchase contract and pay an initial deposit (usually 10-20% of the property value).
✅ Step 4: Register the Property
The property must be registered with the Ministry of Housing and Urban Planning in Oman. The process includes:
- Signing official documents.
- Paying registration fees (typically 3-5% of the property value).
- Receiving the title deed, confirming freehold ownership.
✅ Step 5: Apply for Residency (Optional but Recommended)
If your property purchase exceeds OMR 250,000 ($650,000), you can apply for a 10-year renewable Golden Residency Visa for you and your family.
Is Salalah a Good Investment?
Salalah’s real estate market is expected to grow due to:
✔ Government Initiatives – Vision 2040 aims to boost tourism and foreign investment.
✔ Airport & Infrastructure Expansion – Increased international flights and new roads will attract more tourists and investors.
✔ Rising Property Demand – More expats and retirees are considering Salalah as a second home destination.
For investors, now is the best time to buy property in Salalah, as prices are still relatively low but rising steadily due to increasing demand.
Should Foreigners Invest in Salalah’s Real Estate Market?
Yes! Salalah is one of the best emerging real estate markets in the Middle East for foreign investors. With freehold ownership in ITCs, high rental yields, and growing tourism, it offers an excellent opportunity for expats, retirees, and global property investors.
🔹 Key Takeaways:
✅ Foreigners can buy property in designated ITCs.
✅ Automatic residency comes with ITC property purchases.
✅ High rental yields due to growing tourism demand.
✅ Affordable luxury properties compared to other Gulf cities.
✅ Long-term investment potential as Salalah’s real estate market expands.
If you’re considering investing in Salalah’s real estate market, now is the time to explore opportunities. Would you like help finding the best investment properties? Let us know! 🏡📈
“Don’t wait to buy real estate. Buy real estate and wait.” – Will Rogers
